S corp funding LLC question - Posted by patsears

Real Estate Investing Real Estate Law
1

Posted by Bill Jacobsen on March 09, 2007 at 21:52:44:

My lawyer has advised me to loan money to my LLC while my CPA has said that it doesn’t matter whether you directly fund it or loan money to it.

In most cases, neither the LLC nor S-Corp are taxable entities and there should not be a tax implication either way. Income is taxable when it is earned whether it is in the S-Corp or LLC.

Bill

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S corp funding LLC question - Posted by patsears

Posted by patsears on March 09, 2007 at 13:02:09:

Hello,

I have an S corp that I am doing mobile home “Lonnie Deals” in, and have generated enough cash profit to make the switch to developing land/home deals. I want to use the profits from the S corp business to develop the land I have, but I don’t know the tax implications. Would the money be a loan, or a capital investment? Or would it be a distribution?

Any thoughts?

Thanks!